In the past few years, the cryptocurrency industry has witnessed remarkable growth, drawing a wide range of investors, users, and businesses. However, the regulation of cryptocurrencies is still undergoing transformation. As a result, it differs across jurisdictions. In 2024, crypto businesses need to comply with various rules and requirements, including those for taxation, consumer protection, as well as anti-money laundering (AML), and know-your-customer (KYC) procedures. Hence, a crypto license is a vital necessity for businesses that have to deal with the changing legal requirements, as it demonstrates their compliance and credibility.
However, not all crypto licenses are created equal. Jurisdictions worldwide have varying approaches to crypto licensing, with some providing more favorable and clear conditions than others that may have more restrictions and challenges. In the article below, we will analyze some of the most reliable crypto licenses in 2024 based on the jurisdiction’s reputation, the ease and cost of the licensing process, the scope and flexibility of the license in question, as well as the availability and quality of support services, e.g., banking.
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Georgia: a crypto oasis
Position in the Global Crypto Adoption Index: 2
The ex-USSR Republic of Georgia, which is currently an independent state, is one of the most crypto-friendly countries in the world, ranking second in the Global Crypto Adoption Index by Chainalysis. Georgia offers a simple and low-cost licensing process for crypto businesses. Here, everything can be done online. Issued in a few weeks, the local reliable crypto license covers all types of crypto activities, including exchange, custody, mining, and payment services. The license fee is only GEL 100 (or USD 30), and there is no minimum capital or local presence requirement. Georgia boasts a favorable tax regime for crypto businesses, with no corporate income tax, VAT, or withholding tax on dividends and interest. The country has a stable economic and political climate, a high level of internet penetration, and a supportive legal framework, which makes it a draw for crypto ventures.
Lithuania: simplified licensing procedures and favorable taxation
Position in the Global Crypto Adoption Index: 4
Considering that Lithuania offers a swift and uncomplicated licensing procedure for crypto businesses, it is hardly surprising that you can obtain your crypto license here online and it will take you a month at the most. This permit is valid for crypto exchange and wallet services. Besides, it authorizes you to serve customers who need to transact in electronic money and make e-payments. The license fee is currently EUR 1,463 (USD 1,650). Just like in Georgia, they have no minimum capital or local presence requirements for crypto companies in Lithuania. Local taxes are appealing, with a flat income tax rate of 15% for companies, and no VAT or capital gains tax on crypto transactions. Wonder why Lithuania enjoys a reputation as a reliable place for crypto? The answer is rooted in the jurisdiction’s strong banking sector, coherent policy, and supportive laws that regulate crypto activities.
Poland: emerging crypto hub
Position in the Global Crypto Adoption Index: 13
Poland is rapidly gaining recognition as a crypto-friendly jurisdiction. Crypto businesses about to secure a license in Poland can do it without going bankrupt as the corresponding fees are quite reasonable. A licensed crypto company in Poland has the right to offer exchange and wallet services provided it adheres to Financial Action Task Force (FATF) standards for AML and KYC. The license fee is PLN 5,000 (approximately USD 1,250). Here, your crypto business will face no stringent requirements for minimum capital or local presence, and local taxes are rather low by comparison with other crypto jurisdictions. Suffice it to say that the corporate income tax makes 19%, and you will pay no VAT or capital gains tax on crypto transactions. Due to its supportive laws and efficient banking industry, Poland is an increasingly attractive destination for crypto entrepreneurs as of 2024.
Portugal: general registration and tax incentives
Position in the Global Crypto Adoption Index: 22
Portugal takes a distinctive approach in the sense that it does not require you to obtain a specific license for crypto businesses. Instead, a general registration with the Portuguese Central Bank as a financial entity is enough to operate. The license that crypto companies operate under in Portugal covers crypto exchange and wallet services. To obtain their licenses, businesses in Portugal have to pay EUR 500 (USD 560). Again, they face no strict requirements as far as their substance or minimum capital is concerned. Portugal’s tax treatment is favorable, featuring a flat corporate income tax rate of 21%, and no VAT or capital gains tax on crypto transactions. The country’s stable political and economic situation, along with a supportive legal system, turn it into an enticing option for businesses in the crypto industry.
Great Britain: regulatory registration with FCA
Position in the Global Crypto Adoption Index: 23
Great Britain has adopted a regulatory registration approach for crypto businesses. Instead of a specific license, businesses need to register with the Financial Conduct Authority (FCA) as a crypto asset firm. This registration encompasses wallet and crypto exchange services. Naturally, adhering to FATF standards for AML and KYC is an obligatory requirement. The registration fee varies based on business size and turnover, ranging from GBP 2,000 to GBP 10,000 (or USD 2,700 to USD 13,500). Just like in all of the above jurisdictions, requirements for minimum capital or local presence are rather reasonable, as are local taxes for crypto companies. The corporate income tax in Great Britain makes 19% and is flat. Crypto transactions are subject to capital gains tax with varying rates. A strong banking industry, combined with political stability and sound laws contribute to Great Britain’s appeal as a trusted crypto jurisdiction in 2024.
Understandably, your requirements for a jurisdiction to obtain a crypto license from will vary depending on your personal situation and circumstances. To evaluate all the details and determine which country is the best match for your needs, contact International Wealth consultants. With their excerpt industry knowledge, you will pick a well-reputed location to incorporate a successful crypto business and obtain a license in no time.